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The Two Incentives That Stack
Federal STC Rebate
Applied as an upfront discount on your installer's quote. No application required. Applies to all commercial systems under 100kW.
Instant Asset Write-Off
Deduct the full net cost in the year of installation. Must be installed and operational before 30 June to claim that financial year.
These two incentives are independent and stack. The STC rebate reduces your upfront purchase price directly. The instant asset write-off then reduces the taxable income you use to pay for the remaining cost. Combined, they are the most significant business solar incentives available in 2026.
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Over 3.6 million homes already claiming rebates
Worked Example: 30kW System for a Small Business
Business structure: company. Tax rate: 25%. Location: Sydney/Brisbane (Zone 3/2). FY 2025-26.
That is a saving of $15,875 — 42% off the sticker price — before you count a single dollar of electricity savings. A 30kW system typically saves $8,000–$14,000/year in electricity costs depending on your usage profile.
Victorian businesses add VEU certificate value ($1,500–$4,000) on top, reducing the effective cost further.
STC Rebate Amounts by System Size (2026)
| System Size | Typical Gross Cost | STC Rebate (2026) | Common Use |
|---|---|---|---|
| 10kW | $12,000–$16,000 | $2,500–$3,200 | Small office, cafe, shop |
| 20kW | $22,000–$28,000 | $5,000–$6,400 | Medium business, small warehouse |
| 30kW | $32,000–$42,000 | $7,500–$9,500 | Medium warehouse, manufacturer |
| 50kW | $48,000–$64,000 | $12,500–$15,800 | Large warehouse, factory |
| 99kW | $90,000–$120,000 | $24,500–$31,000 | Industrial, large retail |
Rebate values are for systems in Zone 2–3 (NSW, VIC, QLD, SA). Zone 1 (Darwin/NT) receives more; Zone 4 (Hobart/Canberra) receives slightly less. The STC rebate decreases by roughly 20% each January as the deeming period shortens toward the 2030 scheme end.
State Commercial Solar Programs
Victoria: Victorian Energy Upgrades (VEU)
Best State ProgramThe VEU program creates Victorian Energy Efficiency Certificates (VEECs) for commercial solar installations, which your installer trades for cash value applied as an upfront discount. This stacks with the federal STC rebate.
NSW: Energy Savings Scheme (ESS) + PDRS
NSW's ESS and Peak Demand Reduction Scheme (PDRS) exist but standard commercial solar PV is not a straightforward eligible activity. Some installers may be able to access certificate pathways. Ask your installer explicitly whether ESC or PRC value is included in your quote and what the qualifying pathway is.
QLD, SA, WA, TAS, ACT, NT
Queensland has had various business energy programs — check the Queensland Government website for current offerings as these change frequently. South Australia's REPS primarily covers energy efficiency and battery/VPP connections, with limited direct solar PV benefit. WA, TAS, ACT, and NT do not currently offer state-level commercial solar rebates beyond federal STCs.
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Systems Over 100kW: LGCs Instead of STCs
If your business needs a system larger than 100kW, it does not qualify for STCs. Instead, it generates Large-scale Generation Certificates (LGCs) under the Renewable Energy Target. The financial model is different.
STCs (under 100kW)
- check_circleLarge upfront discount (credited at point of sale)
- check_circleBased on expected generation over deeming period
- check_circleNo paperwork for you — installer handles it
LGCs (100kW+)
- infoNo upfront discount — earned annually from actual generation
- info~1 LGC per MWh generated (~$4–$6 each at 2026 prices)
- info200kW system earns ~$1,100–$1,700/year in LGC revenue
The 99kW rule: Many commercial solar consultants recommend sizing at 99kW if your roof could support more. A 99kW system receives ~$24,500–$31,000 upfront in STCs. A 101kW system receives nothing upfront and earns modest annual LGC income instead. For most businesses, the 99kW STC-eligible system produces better financial returns.
Why Timing Matters
STC rebate shrinks every January
The deeming period drops by one year each January. A 30kW system installed in December 2026 generates roughly 20% more STCs than the same system installed in February 2027. That difference is approximately $1,500–$2,000 in lost rebate value.
30 June deadline for the tax write-off
To claim the instant asset write-off in the current financial year, the system must be installed and ready for use before 30 June. Commercial installations typically take 4–8 weeks from quote acceptance to commissioning. If you are close to year-end, start the process now.
Scheme ends entirely in 2030
The STC scheme ends on 1 January 2031. After that, there is no federal upfront rebate for residential or commercial solar. Each year of delay means a larger share of the incentive is permanently lost.
For the full STC phase-out timeline, see our STC rebate ending guide. For detailed commercial system costs, see our commercial solar cost guide.
Frequently Asked Questions
helpWhat solar rebates are available for businesses in Australia?
Australian businesses can access two main incentives: (1) the federal STC rebate, applied as an upfront discount on installation — worth $7,500–$9,500 for a 30kW system in 2026 — and (2) the instant asset write-off, which lets eligible businesses deduct the full net cost in the year of installation, saving 25–30% in company tax. Victorian businesses can also access VEU certificates worth $1,500–$4,000 for commercial solar. Combined, most businesses save 30–45% of gross system cost.
helpDoes my business qualify for the STC rebate?
Yes, if your system is under 100kW. The Small-scale Technology Certificate (STC) scheme applies to commercial installations up to 100kW capacity, covering the vast majority of small-to-medium businesses: offices, warehouses, retail, cafes, workshops. The rebate is applied as a point-of-sale discount by your installer — no paperwork required from you. Your system must be installed by a Clean Energy Council accredited installer.
helpCan I claim the instant asset write-off for solar panels?
Yes. Eligible businesses can deduct the full cost of a solar system in the financial year it is installed, rather than depreciating it over time. At a 25% company tax rate, a $50,000 solar system effectively costs $37,500 after the tax deduction. At 30%, it costs $35,000. This stacks on top of the STC rebate. The system must be installed and ready for use before 30 June to claim in that financial year. Check with your accountant for current eligibility thresholds.
helpHow much is the STC rebate for a commercial solar system?
STC rebate values depend on system size, location (STC zone), and the deeming period remaining until 2030. In 2026, approximate values are: 10kW system — $2,500–$3,200; 20kW system — $5,000–$6,400; 30kW system — $7,500–$9,500; 50kW system — $12,500–$15,800; 99kW system — $24,500–$31,000. Systems in sunnier northern zones (Darwin, Brisbane) receive slightly more than southern zones (Melbourne, Canberra, Hobart).
helpWhat happens if my solar system is larger than 100kW?
Systems above 100kW do not qualify for STCs. Instead, they generate Large-scale Generation Certificates (LGCs) under the Renewable Energy Target. LGCs are earned annually based on actual generation — roughly one per MWh — rather than claimed upfront. At current LGC prices (~$4–$6 each), a 200kW system generating 280 MWh/year earns approximately $1,100–$1,700 annually. Many businesses deliberately size at 99kW to retain STC eligibility.
helpDo state governments offer additional commercial solar rebates?
Victoria has the Victorian Energy Upgrades (VEU) program, which generates Victorian Energy Efficiency Certificates (VEECs) for commercial solar — typically worth $1,500–$4,000 for a 30kW system. NSW has the Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS), though standard commercial solar PV is not a straightforward eligible activity — ask your installer. Queensland has had business energy programs; check the Queensland Government website for current offerings. WA and SA do not currently offer state-level commercial solar rebates.
helpWhen do commercial solar rebates decrease?
The STC rebate decreases by roughly one deeming year every January. A 30kW system installed in January 2027 generates approximately 20% fewer STCs than the same system installed in December 2026. The scheme ends entirely in 2030. There is a genuine financial incentive to install sooner: waiting one year on a 30kW system costs approximately $1,500–$2,000 in lost STC value.
helpCan a trust or sole trader claim business solar rebates?
Yes. The STC rebate applies regardless of business structure — companies, trusts, sole traders, and partnerships all qualify for the upfront STC discount. The instant asset write-off eligibility depends on your business structure and turnover; sole traders and partnerships claim through their personal tax return. Speak to your accountant to confirm how the write-off applies to your specific structure.
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The next step
If you have any questions about the information in this guide, feel free to get in touch:
Email: hello@whysolar.com.au
Tel: +61 2 5657 6527
If you're considering commercial solar for your business, Bec and the team can help you get quotes from trusted, pre-vetted local installers:
Written by
Bec RamirezAussie Mum & Energy Expert
Helping families navigate the switch to solar with practical, real-world advice. Bec focuses on the financial side — rebates, bill savings, and financing options — so everyday Australians can see real value from going solar.
Learn more about Bec Ramirez